Today, the Bank of England opted to keep interest rates steady at 5.25%, marking the sixth consecutive hold following a streak of 14 consecutive increases since December 2021.

This decision, made by the nine-member panel, saw seven members advocating for a hold, while two proposed a rate drop. Inflation, the gauge of price rise, has exhibited a gradual decline at 3.20% for the year ending in March.

When Will Rates Reduce?

While price increases for essential commodities like food and energy have eased, overall prices are still escalating, albeit at a slower pace.

Andrew Bailey, the Governor of the Bank of England, expressed optimism for the near future, anticipating inflation to approach the target 2.00% threshold in the upcoming months, despite the current rate lingering above.

Andrew Sheen, Managing Director of Thameside Mortgages, highlighted the difference between earlier economic forecasts and the current stance of the Bank of England. “Economists had anticipated a potential rate reduction as early as May, but recent trends have seen these predictions prompted a change in those predictions to August or September this year. Mortgage rates have fluctuated in response to these developments, with some lenders raising rates in recent weeks.

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Get in Touch

If your mortgage deal is coming to an end this year, you should secure a deal 6 months before it ends. If rates continue to rise, you’ve secured the best rate. If rates drop, you could take advantage and switch rates before completion.

Contact Thameside Mortgages today to learn more about how they can help you secure a great deal.

You can call us on 03455 120 125, or complete the form below.

A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it. The Financial Conduct Authority does not regulate most forms of buy to let mortgage.